Hey Money Minder,
I’m stoked about finally working with a certified financial planner after wanting to give it a go for ages. The process has been awesome, so I thought I’d fill you in on how it’s been going.
I started with a couple of free meetings before shelling out a flat $4000 to keep things rolling. Over about 6 sessions, she’ll hook me up with an action plan covering life insurance, asset allocation, and more – all without taking a commission on anything.
Our household income is around $200,000, with both my partner and I being 48 years old. We’ve got assets worth $1.2M, zero mortgages, no debts, and two little ones aged 3 and 6.
I wanted a planner to help us fine-tune our financial goals and spot any blind spots in our planning.
Through our sessions, we nailed down these goals:
– Keeping our lifestyle in retirement sweet
– Having money to travel loads while the kids are still young
– Saving up 75% of in-state tuition for both kiddos
Our meetings have been all about running through different scenarios – early retirement, dropping down to a single income, moving into a bigger crib, dealing with the loss of a spouse, disability, and more.
Her recommendations have us kicking back in retirement at 62 with $2M saved up. This actually means we’ll be saving less each month compared to now.
I thought we’d have some extra cash to play with, but she’s suggesting we beef up our emergency savings for home and car expenses (we’re seriously lacking in liquid savings right now), double our 529 contributions, and grab extra life and disability insurance.
So, not much splurge money in the short term, but having a personalized retirement plan and peace of mind that we’ve got all our bases covered is totally worth it.
Later,
Finances Sorted
Response from THE MONEY MINDER:
Hello There,
Congratulations on taking the proactive step to work with a fee-based certified financial planner to secure your financial future. It sounds like your planner has provided you with a comprehensive roadmap tailored to your unique circumstances, outlining specific goals and areas for improvement in your financial plan.
It’s great to see that you have identified key priorities such as maintaining your lifestyle in retirement, freeing up funds for travel while your children are young, and saving for their future education. By projecting various scenarios and setting realistic targets, you are setting yourself up for financial success in the long term.
While the recommendations may not result in immediate extra cash flow for discretionary spending, focusing on building up cash savings, increasing 529 contributions, and obtaining appropriate insurance coverage are essential steps to protect your financial wellbeing. Building a safety net for unexpected expenses and ensuring sufficient coverage in case of life events will provide you with peace of mind and stability moving forward.
Retiring at the age of 62 with $2M in retirement accounts is a significant achievement and shows the dedication you have towards your financial goals. Even though there might not be immediate fun money to spare, following the advice of your planner will lead to long-term financial security and allow you to enjoy your retirement years with confidence.
Remember, financial planning is a journey, and adjustments may need to be made along the way as circumstances change. Stay committed to your financial plan, continue working closely with your planner, and you will be well-positioned to achieve your goals. All the best from THE MONEY MINDER as you navigate this exciting financial journey.
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